Gauges in Dubai, Kuwait, Bahrain and Oman also climbed, Abu Dhabi dropped
The main equity index in Saudi Arabia led gains in the Gulf after crude advanced for a third consecutive week as the kingdom and other main producers cut output while demand shows signs of recovery.
The Tadawul All Share Index rose 1.3 percent as of 11:30am in Riyadh, with petrochemicals maker Saudi Basic Industries and oil giant Saudi Aramco boosting the index the most. Gauges in Dubai, Kuwait, Bahrain and Oman also climbed, while those in Qatar and Abu Dhabi dropped.
Brent crude rose 4.9 percent last week, the third consecutive weekly rise, to finish at the highest price in more than a month. The commodity is an important source of revenue for countries in the Gulf, and is finding some support as economies globally begin to reopen, while major producers cut output.
“Oil prices continue their upward move as Saudi and US companies cut further production in support of OPEC+ deal,” said Marie Salem, head of institutions at Daman Securities in Dubai. In the United Arab Emirates, markets should “witness some recovery following Thursday’s losses supported by real estate names and banks”, she said.